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Stocks U / US LEC Corp.


Subject:  Corporate Statements -Good News? Date:  10/31/1998  1:14 PM
Author:  phenders Number:  24 of 45

The folowing is from the US LEC Third Quarter Results released Tuesday, October 27, 1998 08:32 AM

Richard T. Aab, Chairman and Chief Executive Officer of US LEC Corp. commented, ".......During the third quarter of 1998, US LEC's core business revenue and revenue related to reciprocal compensation experienced strong growth. Given that no near term resolution is expected of the reciprocal compensation issue, and the financial markets' concerns related to this issue, US LEC elected to make a $6.0 million provision against reciprocal compensation revenue and receivables. No adjustments were made in reducing the commissions liability which is to be paid against these revenues. This provision was made to be conservative in US LEC's reporting of revenue, and does not reflect a change in the Company's commitment to pursue the matter to a successful conclusion."

Does this mean that there earnings growth is without regard to the compensation that is in dispute? That should be a strong positive. (Not sure I understand the commisions liablity relative to revenue.)

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